The Rugby gazette and east Tennessee news. (Rugby, Morgan Co., Tenn.) 1884-188?, 1887-06-25

The Fidelity National Bank Closes It's
Doors, but the Officials say the Bank Will
Pay Dollar For DOllar-Vlce-P President |
Harper Gives Up Every Thing to His
Creditors.
CINCINNATI, June 2l.-To-day the doors OF
the Fidelity National Bank are closed, When |
o'clock arrived, the hour for opening the bank,
the doors were shut and admttance was denied |
to all. Soon large and angry crowd gathered
and there was much excitement. All k nds OF
rumors were abroad. One, and it is known to
be correct, was to the effect that the U. S. Bank
Examiner had spent yesterday and
large part of last night in going
over the books, and that he
had announced that it would be well for Mr.. i.
j.. Harper, the Vice President and virtual
manager of the concern, to resign Meanwhile
the crowd kept growing larger, and one or two
men began to make threats, and talked about
smashing the windows. But soon detail of
eight policemen arrived, and they kept the
crowd quiet. One obstreperous individual, who
claimed he would lose every thing should the
Fidelity go under, attempted to force the doors
of the bank open. He hammered and hammer
ed on them and paid no attention to the COM
mands Of the police to stop. Finally they were
obliged to tear him from the door and put him
on the outside OF the crowd where he quickly
subsidized.
Have you any thing to say Mr.. Harperr
asked u newsman at ten o'clock as he APP
preached the Vice-President OF the Fidelity
who was found seated listlessly behind his big
desk out of sight of those who were peerlag
through the bank windows mot word"
was the answer, and then turning his eyes full
on the interviewer, betraying considerable
m M
what can l sayP You see the bank is
closed. Is there much of crowd out in front?"
Eyes, there are good many people there, and
more coming" II think the excitement will
be greater in other towns than it is here, don't
your THAT will be matter to know Of
later. But, Mr.. Harper what is there in this
statement that you were asked to re-
sign?' II haven't word to say"
The newsman then went to Mr.. Hopkins, the
assistant cashier and asked the question Mr..
Harper had just refused to answer.
mot word of truth in it," "What about the
depositors. Mr. Hopkinsf' "Glad you men
toned that. Say to them that they will get ev-
cry dollar, if not to-day or tomorrow the next
day. Make it conspicuous that they will get
every dollar"
Mr. Rowland Ellis the old Bank Examiner
for Ohio, said: ut looks very bad, ! hear the
Government agent has discharged Messrs. Har.
per, Baldwin and Hopkins from their positions
of trust" "HOw could % Govern.
ment agent discharge themT' why
its Government depository and
the suppostion is inevitable from to-days de-
yelopments that they have been using the Gov
ernments funds. The Government has preju-
dice against wheat deals, and will be likely
to be very severe with these men if they are
found to have been in that deal. If they have
they have committed penitentary offense and
are now, depend upon it, under Governmental
surveillance"
Mr.. j. r. DeCamp, of the Metropolitan, has
been appointed receiver
At noon to-day came the news of the as.
signment of the enormous iron business OF
L. l.. Harper & Co. to Eugene Zimmerman.
L. l.. Harper g. Co. controlled perhaps the
greatest iron interests west of the Alleghe.
Mes This includes the Riverside Rolling
Mill at Cullom Station, Riverside and the ex.
tensive works in Newport, KY, employing
thousands of men. Mr.. Harper also makes ar
individual assignment of his entire property
giving up every thing He is ruined man
Every thing he possesses has been turned ovel
to his creditors.
Mr.. Harper has transferred twenty-five lots
to the, E-dsss. - Bank, and half interest in two
n2fherJ. HOWEVER, he can not pay what he owes
the bank in this way. According to all accounts
that is Q hopeless debt.
Joseph w. Wiltshire transferred to E. L. Har
per great deal of real estate situated in differ
ent parts of the city on prominent streets.
This, no doubt was done to secur' the banl
from any failure on the part of the grantor tt
pay 81 100000, which he Wiltshire, is alleged t.
have borrowed without the Directors consen
and conveyed to Chicago
Joseph Wiltshire, it is said, has also gone up
He has transferred his property to Mr. Harper
who in turn transfers everything to his creditors
What caused the troubles is the universa
question. 1t takes only one word in answer
speculation. In spite of all dcnials in spite of th
solemn assertions of Mr.. Harper to the contrar
the money OF the Fidelity has been used in thu
great Chicago wheat deal
There is one claim against the Fidelity by
the American Exchange Bank Of over 800,
600, and Messrs Swift and Lyman, tw,
prominent Chicago attorneys, have been her,
for some days vainly trying to straightel
out matters, and in connection wit
this claim it is found that there was som
system of bookkeeping by which the whea
deal operations were concealed. 1t is sal
that Mr. Hopkins signed Mr.. Harpers nam
to the warehouse receipts and that these re
ceipts were not entered on the regular book
as collaterals but put together under som
other head which did not divulge their tru
character. Thus the directors of the ban
were kept in ignorance of what was going on
A meeting of the Directors was held at Z "a
O'Clock this morning. The Bank Examiner wa
present and he expounded the law to the D
rectors, and insisted that the bank should b
closed until a complete examination of its cor
ditiOn should be made, and so when the hou
came for opening the doors they were nc
opened
1t was supposed by many yesterday after
noon that the bank would have to close an
most of the other city banks kept open until
O'Clock for the transaction Of regular business
so as to give their depostors a chance to &c
rid of their checks on the Fidelity
Notwithstanding the general knowledge tina
the Fidelity was in trouble the Franklin ALLOW
ed balance of over $4,000 against the Fidelit
to remain until to-day whereas they could hay
had it put through the Clearing House yestel
day afternoon.
One OF the direct causes of the straits the F
deity got into was the withdrawing of o loan
$4,000 which the Queen City had made for tn
purpose Of helping it along. The Queen Cit
has been friendly to the Fidelity and has
various times given needed aid, b,
when rumors of the condition of Il
Fidelity became serious it co
cluded to act Oh the principle of self-preserv
ton, and demanded the return Of its loan.
run was made on the bank, too, yesterday aftt
noon. 1t did not assume great proportions, b,
it was sufficient, with the withdrawal of favo
such as the above mentioned, to render IL
Fidelity unable to meet serious run such
would unquestionably have taken place to-da
The liabilities of the bank are S5500,000 ar
assets about 81 100000 with but 500, 900 cash
hand.
BY order of the Comptroller of the Current
bank officials Harper. Baldwin and Hopkii
were arrested this evening. They waived C